Local TV report out of Indiana highlights potential for billions of dollars of tax fraud by illegal immigrants

posted at 12:01 pm on May 4, 2012 by Morgen Richmond

An investigative report from Indiana television station WTHR highlights what they call a “loophole” in the tax code which may be costing tax payers billions by enabling illegal immigrants to claim tax credits for children not even living in the U.S. I’ve embedded the video package below, but for those of you at work there is a good write-up on their site as well. Did I say “potential”?

Each spring, at tax preparation offices all across the nation, many illegal immigrants are now eagerly filing tax returns to take advantage of a tax loophole, using their ITIN numbers to get huge refunds from the IRS.

The loophole is called the Additional Child Tax Credit. It’s a fully-refundable credit of up to $1000 per child, and it’s meant to help working families who have children living at home.

But 13 Investigates has found many undocumented workers are claiming the tax credit for kids who live in Mexico – lots of kids in Mexico.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower told Eyewitness News. “The more you put on there, the more you get back.”

The whistleblower has thousands of examples, and he brought some of them to 13 Investigates. While identifying information such as names and addresses on the tax returns was redacted, it was still clear that the tax filers had received large tax refunds after claiming additional child tax credits for many dependents.

The report goes on to highlight several of these returns, actual redacted tax returns, generating refunds in excess of $10,000. So it’s easy to imagine how these numbers could really add up on a national basis.

Even more outrageous than the report itself however is a statement WTHR received from the IRS after the story aired. See no evil, hear no evil?

The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used. Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect. The IRS administers the law impartially and applies it as it is written. If the law were changed, the IRS would change its programs accordingly. The IRS disagrees with TIGTA’s recommendation on requiring additional documentation to verify child credit claims. As TIGTA acknowledges in this report, the IRS does not currently have the legal authority to verify and disallow the Child Tax Credit and the Additional Child Tax Credit during return processing simply because of the lack of documentation.

Here’s the real problem and I’m not sure calling this a tax “loophole” is really the best way to describe it. As the law is written, it’s perfectly legal for non-legally resident aliens to file tax returns. It’s required actually. The law also makes no distinction between legal and illegal residents when it comes to claiming most tax credits and deductions. So under current law an illegal immigrant can claim the Child Tax Credit on their return, as pointed out by the IRS in their response.

So this scheme is actually legal? (Cue outrage). Well, not exactly. The IRS web site has a good summary of the eligibility criteria for the Child Tax Credit, but in order to qualify for this credit the child being claimed must be a U.S. citizen or green card holder, and must have also been a resident of the tax payers’ household for more than half the year (among other requirements). So an illegal immigrant claiming a tax credit for one or more eligible children born and living with them in the U.S. is perfectly legal. Claiming that a couple dozen nieces and nephews live with you in one house in Indiana when they actually live in Mexico? Not so much.

So there is plenty of fodder for outrage here, obviously, not the least of which is the seeming indifference to this problem on the part of the IRS. I gather from their response that there is no mechanism in place to verify the immigration or residency status of the children being claimed. Outside the course of a regular audit I assume. How many people residing in the U.S. illegally would ever even show up for an IRS audit? And if I were really cynical I would posture that knowing this, the IRS would not even bother to direct their limited resources towards verifying many of these returns.

I think it’s also important to note that there is no reason to assume that this type of fraud is limited to those residing here illegally. Given how it easy it seems to be to get away with this, I suspect the scope of this problem is much, much greater than this. While I don’t expect the GOP to place much emphasis on this between now and November, this should be one of the major arguments for tax reform. Rather than having a tax code riddled with loopholes such as this which enable those willing to break the law to take advantage of their fellow tax payers, why not have a flatter, simpler code which eliminates most if not all of these types of credits and deductions. And if the goal is really to provide income support to low-income families (and a refundable tax credit is just welfare in disguise), then it should be called what it is and should be enacted as part of legislation which includes a mechanism to prevent this sort of abuse from taking place.

(Cleaned up a couple of wording and grammatical problems after publishing)


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Comment pages: 1 2

potential for billions of dollars of tax fraud by illegal immigrants

what about any Senate positions for undocumented Indians?????
/Liz Warren

ted c on May 4, 2012 at 12:03 PM

The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used. Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect.

In other words, when you’re being raped don’t fight back. Just submit and enjoy the sex. Fighting back might make it worse.

BobMbx on May 4, 2012 at 12:04 PM

Out of lemons make lemonade? IRS can locate where all thsoe refunds went? How about sharing this info with INS?

anikol on May 4, 2012 at 12:07 PM

Impossible. They pay sales tax.
/

rogerb on May 4, 2012 at 12:08 PM

Illegal immigrants file taxes?

sram on May 4, 2012 at 12:09 PM

…Turbo Tax Timmy…WILL BE RIGHT ON IT!

KOOLAID2 on May 4, 2012 at 12:10 PM

…can’t wait for the spin on this!
.
.
.it’s the ECONOMY stupid…!!!

KOOLAID2 on May 4, 2012 at 12:11 PM

I bet stuff like this doesn’t get factored into all those cost/benefit analysis studies the commie/libs and libertarians do supporting illegal immigration.

Knott Buyinit on May 4, 2012 at 12:11 PM

deliver checks by ice agents. problem solved.

ant on May 4, 2012 at 12:12 PM

How about requiring a SS# or a Green Card# for all dependents claimed. That would solve the problem.

Aaron K on May 4, 2012 at 12:13 PM

“Guadalupe, take the W-2 forms over to Tio Julio! He has the list of dependents that have identification numbers and he can file the forms for us! Don’t get the RAL just let the IRS direct deposit into the family account – it only takes a few days! Take him this nice Cubano and tell him ‘Gracias, I mean, Thank You1!’ “

ExpressoBold on May 4, 2012 at 12:14 PM

Unstinkingbelievable

cmsinaz on May 4, 2012 at 12:14 PM

Illegal immigrants file taxes?

sram on May 4, 2012 at 12:09 PM

When the refundable tax credit is more than what you actually had confiscated, why not?

antipc on May 4, 2012 at 12:16 PM

Out of lemons make lemonade? IRS can locate where all thsoe refunds went? How about sharing this info with INS?

anikol on May 4, 2012 at 12:07 PM

Your logic is clearly racist.

LoganSix on May 4, 2012 at 12:16 PM

If I got caught doing that I would go to jail.

NeoKong on May 4, 2012 at 12:16 PM

Local TV report out of Indiana highlights potential for billions of dollars of tax fraud by illegal immigrants

If it is racist to call illegal immigrants “illegal,” is it also racist to call their illegal behaviour — tax fraud — “illegal,” too?

Resist We Much on May 4, 2012 at 12:17 PM

The idea that illegals that are hired “legally” pay income taxes is a joke. Take a look at their W4′s.

blah blah blah on May 4, 2012 at 12:19 PM

Between the Additional Child Tax Credit and the Earned Income Tax Credit and Making Work Pay Tax Credit, April 15th has become Payday for the bottom 40% of tax payers. These refundable credits not only cancel out a filer’s tax liability, but result in a paycheck from Uncle Sam if the value of the credit exceeds the filer’s liability. In other words, if you’re earning up to $64,000 a year (in 2008), and claiming these credits, you’re likely to receive a cash payment from the IRS. Negative income tax. You’re not only off the tax rolls (as a payer) but a new dependent on government payouts.

And it doesn’t matter if you’re legal or not, as long as you file.

de rigueur on May 4, 2012 at 12:21 PM

*Blood boiling!

MeatHeadinCA on May 4, 2012 at 12:22 PM

This isn’t about a handful folks getting a few tax dollars returned to them……..this is pure racism.

/DNC

antipc on May 4, 2012 at 12:22 PM

Illegal immigrants file taxes?

sram on May 4, 2012 at 12:09 PM

Apparently if they can get some $, they do.

MeatHeadinCA on May 4, 2012 at 12:23 PM

I think it’s also important to note that there is no reason to assume that this type of fraud is limited to those residing here illegally. Given how it easy it seems to be to get away with this, I suspect the scope of this problem is much, much greater than this.

You win a kewpie doll.

My dad’s a retired auditor from the Criminal Investigations Division and has seen a lot of this kind of crap going on with low-income filers of all backgrounds.

Another tactic used is each parent filing separately as “head of household” and then claiming at least one kid. That gives them a larger exemption that either filing single or married and gives each a huge boost due to the Earned Income Tax Credit for having kids.

Unfortunately, states and the feds tend to look more for either rich tax evaders or tax protesters rather than blatant fraud by low-income filers.

teke184 on May 4, 2012 at 12:23 PM

Impossible. They pay sales tax.
/

rogerb on May 4, 2012 at 12:08 PM

Where is Rick Perry?

MeatHeadinCA on May 4, 2012 at 12:23 PM

seeming indifference to this problem on the part of the IRS

My belief is that it is actually the policy of this regime to change the demographic makeup of the country. Liberals don’t want an independent citizenry. Nor do they want white people. Instead, they want sheep. Strong-working, yet ignorant sheep, controlled by their fantasy-myth system of Christianity, controlled by clerics.

So where there should be outrage, there is instead a bemused, smirking silence on the part of Liberals, as if, for them, this is justice, and America will pay. Literally.

Herald of Woe on May 4, 2012 at 12:24 PM

what about any Senate positions for undocumented Indians?????
/Liz Warren

ted c on May 4, 2012 at 12:03 PM

This just in – warren has changed her name to “2 dogs f’ing”.

VegasRick on May 4, 2012 at 12:24 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

Tax fraud by illegal immigrants, gee ya think? And not just from south of the border. The most egregious kinds come from illegals from the middle east. They do it to support Hamas and Hezbohlla et al. A veritable enterprise it is.

jake49 on May 4, 2012 at 12:26 PM

O/T Is anyone else getting a pop up ad from Dynamic? It takes over the HA thread and I can only close it, along with the HA site. It happened just now on this thread and yesterday also. I ran all of my Anti-Virus programs, but nothing found.

When the ad pops up, the HA thread is gone. The back arrow doesn’t work either. Strange as I’ve never had this happen on HA before.

Thanks

bluefox on May 4, 2012 at 12:28 PM

Indiana…imagine what it’s like in Texas, Florida, New Mexico, Nevada and especially in California.

Schadenfreude on May 4, 2012 at 12:28 PM

Explain to me how illegals can file taxes or yet are required to file taxes but are not deported?

This boggles my mind.

Doesn’t this identify another class of citizen? One who pays taxes and yet does not get a say in elections?

It’s the Democrats that will not do anything about this 2nd class citizenry who are the ones who should be charged with class struggle.

In my opinion there are three classes in our U.S. now.

1st class: The rich Lobbyists who pull the strings in Washington and those politicians under the strings.

2nd class: Legal U.S. citizens.

3rd class: Illegal aliens who are paying taxes.

shick on May 4, 2012 at 12:28 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

I don’t have any nieces, nephews, or children living in Mexico. Could you tell me how to game the system?

MeatHeadinCA on May 4, 2012 at 12:28 PM

I meant to include that the aliens do not get a vote.

shick on May 4, 2012 at 12:29 PM

Just get rid of the source of corruption, the “Earned Income Credits”. No one should be getting free money from the IRS when they don’t pay any income taxes.

slickwillie2001 on May 4, 2012 at 12:30 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

You deserve to get Fluked in a very painful way, then starved, or both concurrently. Hannity had a guy like you on last night – he was for: free schooling, food, housing, transportation and to be given a job “which he’d like”.

Go do what we did to study in parallel, sacrifice a little and invest in yourself. All have equal opportunities and that’s all freedom guarantees you, unless you are handicapped. In your case, I’d pay for your brain treatment because it’s definitely defect.

I wish for your kind, if not clinically ill or malformed, to spontaneously combust, because you will destroy the entire world. Utopia is not what you imagine it to be.

Schadenfreude on May 4, 2012 at 12:32 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services wire it down to Mexico: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

Accuracy is everything.

antipc on May 4, 2012 at 12:32 PM

Apparently if they can get some $, they do.

MeatHeadinCA on May 4, 2012 at 12:23 PM

But they can’t get back more than was withdrawn. (I don’t think so at least) If they do then we truly are a wealth redistribution (communist) country and just don’t know it.

shick on May 4, 2012 at 12:33 PM

In my opinion there are three classes in our U.S. now.

1st class: The rich Lobbyists who pull the strings in Washington and those politicians under the strings.

2nd class: Legal U.S. citizens.

3rd class: Illegal aliens who are paying taxes.

shick on May 4, 2012 at 12:28 PM

At least get it right.

2nd class: Legal U.S. citizens.

…who pay most of the taxes for all the other categories and especially for the monstous looters who exploit the moochers, simply for votes, while keeping them on the modern day plantations.

Wake up, all of you, and pitchfork the looters.

Schadenfreude on May 4, 2012 at 12:34 PM

If they do then we truly are a wealth redistribution (communist) country and just don’t know it.

shick on May 4, 2012 at 12:33 PM

We are…you just don’t know it, yet. Wake up…the sooner, the better. Get your pitchforks out because you and your family will be pilloried if you don’t.

Schadenfreude on May 4, 2012 at 12:35 PM

Illegal immigrants file taxes?

sram on May 4, 2012 at 12:09 PM

There is a big difference between paying income taxes, and filing an income tax return.

Many illegals file income tax returns, but pay no income taxes. They file returns so that they can claim income tax “credits” — which are basically just welfare payments from the U.S. Treasury. These dependent child tax credits that the illegals in this story are fraudulently claiming are just one (of many, sadly) of the many tax “credits” that illegals (and others) can claim in order to get money back from the U.S. government, even when they’ve never paid any money into the system.

It’s an outrage, but so many of our byzantine tax and immigration laws are just like this one, basically designed and used to commit massive fraud against U.S. taxpayers.

AZCoyote on May 4, 2012 at 12:36 PM

This is the tip of the iceberg. Illegal aliens are defrauding us out of so much money it’s ridiculous. Who do you think it was taking out all of those stated income, no down payment, no document loans in California, Nevada and Arizona that crashed the economy? Refi, refi, refi, then walk away. It’s easy when it was all based on a fake ID in the first place, and you can just start over using another SSN number.

The whole issue with ITIN numbers is incredible; a special category created by the IRS just for illegal aliens to be able to cheat on their taxes! Woo-hoo! Then we can talk about having five or six kids all getting welfare checks, but mommy and daddy are both making $20 an hour under the table. There have been so many of them showing up in the emergency rooms and then walking on the bill that they’ve been just closing them down (it doesn’t bode well for your chances, when you’re bleeding out and the local emergency room is no longer there).

All of this could just be stopped. Make a fraud-proof Social Security card (no different than the driver’s licenses issued in every state) and require it to be presented every time someone wants to get a check from the government of any sort. End of story.

Progressive Heretic on May 4, 2012 at 12:36 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

Yeah never mind they are ILLEGAL.

How much you pay in every year? If you pay nothing , then shush up because those of use that do pay in have a right to be disgusted by this.

watertown on May 4, 2012 at 12:37 PM

But they can’t get back more than was withdrawn. (I don’t think so at least) If they do then we truly are a wealth redistribution (communist) country and just don’t know it.

shick on May 4, 2012 at 12:33 PM

They most certainly do – that is the only reason they even file the return in the first place. Risk vs gain, etc.

To your second point – yes, we are. Ever since our govt started TAXING a person’s hard earned income, and giving it to someone else (in order to buy votes, maintain power, etc…). Sad state of affairs indeed – but not news.

Hueydriver on May 4, 2012 at 12:39 PM

I wish for your kind, if not clinically ill or malformed, to spontaneously combust, because you will destroy the entire world.

Schadenfreude on May 4, 2012 at 12:32 PM

wishing death upon your fellow commenter is extremely poor form.

sesquipedalian on May 4, 2012 at 12:39 PM

Is the IRS still not sharing information with ICE?

Or would doing so violate their “impartiality?”

Other agencies?

If I file a huge income and list it all as proceeds from major theft or fraud…will the IRS report it to anyone?

Hey, I don’t want the IRS to do a Capone on me…ill gotten gains, sure, but at least I paid my taxes.

Can’t get any answers since that bearded guy with TaxMasters stopped answering my calls.

coldwarrior on May 4, 2012 at 12:39 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

Sigh. Another evil corporation comment. This country was founded on the ability to make your own fortune….not to have the government take at gunpoint your treasure and GIVE IT TO PEOPLE NOT LEGALLY IN THE COUNTRY.

search4truth on May 4, 2012 at 12:41 PM

The loophole is called the Additional Child Tax Credit. It’s a fully-refundable credit of up to $1000 per child, and it’s meant to help working families who have children living at home.

For the standard Child Tax Credit, used by millions of parents across the country, the taxpayer(s) must enter the name and Social Security number of the child being claimed as a dependent living in the taxpayers’ home.

Congress could remedy this problem by requiring that taxpayers claiming the Additional Child Tax Credit enter the name and Social Security numbers of the children for whom the ACTC is claimed.

The IRS could then verify whether the Social Security numbers entered for the children on tax returns match Government records before sending out the refunds. This would be no problem for taxpayers claiming the credit legitimately, but could be used to detect fraud because children living in Mexico do not have U. S. Social Security numbers!

Steve Z on May 4, 2012 at 12:43 PM

But they can’t get back more than was withdrawn. (I don’t think so at least) If they do then we truly are a wealth redistribution (communist) country and just don’t know it.

shick on May 4, 2012 at 12:33 PM

1) Most of our entitlement programs are redistribution at their core.

2) Did you see some of those returns. As someone in the 99% (snicker), I get pissed when I see an illegal getting A LOT more money back in their taxes because they have a niece and nephew living in Mexico.

MeatHeadinCA on May 4, 2012 at 12:43 PM

The way I read this, the illegals are paying say $400 in taxes and claiming $10,000 in credits. Insane.

pat on May 4, 2012 at 12:44 PM

Maybe the next President and a new Congress could take the time to trash the present Tax Code and follow through with a simple flat tax?

Maybe 5% for incomes under $20k; 10% for all other income? Maybe 15% for incomes over $500k? No deductions, none, no tons of tax codes to wade through, and drastically cut back the size of the IRS, maybe disband the IRS?

Decades of tinkering and making exceptions to all sorts of special groups is screwing over all the other groups….and giving away more “free money” to folks who put nothing into the pot to begin with.

coldwarrior on May 4, 2012 at 12:45 PM

At least get it right.

2nd class: Legal U.S. citizens.

…who pay most of the taxes for all the other categories and especially for the monstous looters who exploit the moochers, simply for votes, while keeping them on the modern day plantations.

Wake up, all of you, and pitchfork the looters.

Schadenfreude on May 4, 2012 at 12:34 PM

I don’t understand what you are suggesting that I got wrong. I don’t disagree with you that Legal U.S. citizens are paying most of the taxes. I never suggested anything like that.

If they do then we truly are a wealth redistribution (communist) country and just don’t know it.

shick on May 4, 2012 at 12:33 PM

We are…you just don’t know it, yet. Wake up…the sooner, the better. Get your pitchforks out because you and your family will be pilloried if you don’t.

Schadenfreude on May 4, 2012 at 12:35 PM

Prove to me that people are getting more money back from their returns then they have withdrawn from their paycheck. Don’t state it without the proof.

shick on May 4, 2012 at 12:45 PM

Yeah never mind they are ILLEGAL.

How much you pay in every year? If you pay nothing , then shush up because those of use that do pay in have a right to be disgusted by this.

watertown on May 4, 2012 at 12:37 PM

what difference does it make that they’re ‘illegal’?

are you disgusted by corporate loopholes as well?

sesquipedalian on May 4, 2012 at 12:45 PM

loopholes for corporations to maximize their profits: good.
loopholes that put money in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

So, we should take money from productive people who earned it and give it to those who haven’t. And who broke laws to get here. And likely broke more laws to claim it.

Otherwise, those groups of productive people corporations will probably just throw all that extra money into the shark-infested moat around their castles. For fun. But those poor illegals will make some great economic decisions with it.

Just probably not here.

TexasDan on May 4, 2012 at 12:46 PM

are you disgusted by corporate loopholes as well?

sesquipedalian on May 4, 2012 at 12:45 PM

Is this the point where we should call you out for not registering your moral disgust over violent head-bashing of working women?

TexasDan on May 4, 2012 at 12:48 PM

These dependent child tax credits that the illegals in this story are fraudulently claiming are just one (of many, sadly) of the many tax “credits” that illegals (and others) can claim in order to get money back from the U.S. government, even when they’ve never paid any money into the system.

It’s an outrage, but so many of our byzantine tax and immigration laws are just like this one, basically designed and used to commit massive fraud against U.S. taxpayers.

AZCoyote on May 4, 2012 at 12:36 PM

You are sure about this? Prove it. I don’t understand how the government can give someone their money back to them if they never gave it.

shick on May 4, 2012 at 12:48 PM

So, Julia is actually Julio?

Fallon on May 4, 2012 at 12:48 PM

So, Julia is actually Julio?

Fallon on May 4, 2012 at 12:48 PM

“Forward” for both.

Imagine what happens in healthcare.

IRS…Holder…Congress…taxpayers are scroomed, beginning with Obama. Put it all on him.

Schadenfreude on May 4, 2012 at 12:50 PM

Is this the point where we should call you out for not registering your moral disgust over violent head-bashing of working women?

TexasDan on May 4, 2012 at 12:48 PM

you missed that one, danny boy.

sesquipedalian on May 4, 2012 at 12:50 PM

I can’t wait to see the ‘lawmakers’ ‘ reaction, crooks one and all.

May they all spontaneously combust, and primarily the media for covering up for Obama. YOU are derelict and deserve to vanish.

Schadenfreude on May 4, 2012 at 12:52 PM

But those poor illegals will make some great economic decisions with it.

TexasDan on May 4, 2012 at 12:46 PM

apple’s $100 billion cash reserves – benefits all of us, in some magical way! poor mexican having a little more to spend on goods and services – horror.

good to know that according to you, hard-working mexicans don’t deserve the money because they don’t know how to use it well. what a rotten soul you have…

sesquipedalian on May 4, 2012 at 12:54 PM

They most certainly do – that is the only reason they even file the return in the first place. Risk vs gain, etc.

To your second point – yes, we are. Ever since our govt started TAXING a person’s hard earned income, and giving it to someone else (in order to buy votes, maintain power, etc…). Sad state of affairs indeed – but not news.

Hueydriver on May 4, 2012 at 12:39 PM

I have two options now. Pretend you didn’t say that and try to find the same utopia sesquipedalian is searching for or..

Bring this up in every townhall I can. And every call to my local politican.

I’m a bit grumpy now.

(Unrelated: If you were a Huey pilot in Vietnam, than you. So was my father. Glad you both made it back.)

shick on May 4, 2012 at 12:55 PM

loopholes for corporations to maximize their profits: good.

loopholes that put money to which no one is entitled under the law in the hands of people who spend it on goods and services: outrageous.

sesquipedalian on May 4, 2012 at 12:25 PM

FIFY. Yeah, it is outrageous.

BuckeyeSam on May 4, 2012 at 12:55 PM

I can’t wait to see the ‘lawmakers’ ‘ reaction, crooks one and all.

May they all spontaneously combust, and primarily the media for covering up for Obama. YOU are derelict and deserve to vanish.

Schadenfreude on May 4, 2012 at 12:52 PM

http://www.youtube.com/watch?v=dMPr77gB1aU&list=UUSFLs1nwzqSC3Tq6cXhJkLg&index=2&feature=plcp

MeatHeadinCA on May 4, 2012 at 12:56 PM

YOU are derelict and deserve to vanish.

Schadenfreude on May 4, 2012 at 12:52 PM

because spending your entire day, every day, spewing bullsh!it on hotair is extremely productive, right? what’s your economic contribution?

sesquipedalian on May 4, 2012 at 12:57 PM

apple’s $100 billion cash reserves – benefits all of us, in some magical way! poor mexican having a little more to spend on goods and services – horror.

good to know that according to you, hard-working mexicans don’t deserve the money because they don’t know how to use it well. what a rotten soul you have…

sesquipedalian on May 4, 2012 at 12:54 PM

Still waiting for you to show me how to game the system so I can stimulate the economy.

MeatHeadinCA on May 4, 2012 at 12:58 PM

So much for the canard that illegal immigrants pay income taxes just like the rest of us.

One thing I don’t see getting mentioned is how are these illiterate, Spanish-speaking, illegal immigrants filing returns?

I think it’s time for Congress to shut down these income-tax-prep outfits that purport to help the “under-resourced” when all they do is facilitate tax fraud.

BuckeyeSam on May 4, 2012 at 12:58 PM

1) Most of our entitlement programs are redistribution at their core.

2) Did you see some of those returns. As someone in the 99% (snicker), I get pissed when I see an illegal getting A LOT more money back in their taxes because they have a niece and nephew living in Mexico.

MeatHeadinCA on May 4, 2012 at 12:43 PM

I don’t disagree with you about the entitlement programs. My beef is that it cannot be argued that we are not a wealth redistribution nation if very specifically people are getting more in their REFUND then was withheld from their wages. According to some here that happens.

I’m very shocked to hear that and perhaps I need to admit my naivete.

Thanks for you thoughts.

shick on May 4, 2012 at 12:58 PM

How about requiring a SS# or a Green Card# for all dependents claimed. That would solve the problem.

Aaron K on May 4, 2012 at 12:13 PM

They already require the SS# for children listed on a tax return. Which means no one in the IRS is checking to see if the SS#’s are bogus, apparently. Just write-em a check.

Squiggy on May 4, 2012 at 12:59 PM

OK, if you watch the video I posted for Schadenfreude, you’ll see the defense of this. By claiming nieces and nephews in Mexico that can’t legally travel to the US, they can help their nieces and nephews in Mexico by sending them more money.

MeatHeadinCA on May 4, 2012 at 1:02 PM

because spending your entire day, every day, spewing bullsh!it on hotair is extremely productive, right? what’s your economic contribution?

sesquipedalian on May 4, 2012 at 12:57 PM

I’m so glad you asked. I’m independently wealthy, having made it with my brain, hands, hard work and focused determination, risked, won and lost, but made it to be a 1%r. You have no idea how I love telling you the following.

I gave up producing when the hooligans/looters came onto the scene. I’m not contributing to your Utopia. I laugh at you while I starve you and your masters.

Schadenfreude on May 4, 2012 at 1:04 PM

what difference does it make that they’re ‘illegal’?

are you disgusted by corporate loopholes as well?

sesquipedalian on May 4, 2012 at 12:45 PM

The difference is that we are talking about money that was earned by the wealthy (less than $100,000/year now). The money is theirs. The government comes along and says, “You don’t need this much money. Let me take some of it for you and distribute it best way we think it should be.”

Then that wealthy person files a return saying, “I want a good portion of my hard earned money back.”

What is suggested here is that these return filers (including illegal aliens) are requesting for more money then they had withdrawn.

The government is essentially giving the money taken from those who earned it and handing it over to those who haven’t.

Please retype that in your own words to show that you understand what is being discussed.

shick on May 4, 2012 at 1:06 PM

Actual investigative reporting? On a local TV station? On a non-PC subject? Am I really awake?

I want a 13Investigates TV station in my city!

netster007x on May 4, 2012 at 1:07 PM

sesquipedalian on May 4, 2012 at 12:57 PM

I’m a completely free and independent person, don’t take a penny from anyone, and it’s none of your business what I do, part of the day, all day, or not at all.

You represent and exploit the moochers at best and are a looter at worst, bloodsucker.

Your types need to be destroyed or else they’ll destoy the world.

Schadenfreude on May 4, 2012 at 1:08 PM

I’m so glad you asked. I’m independently wealthy, having made it with my brain, hands, hard work and focused determination, risked, won and lost, but made it to be a 1%r. You have no idea how I love telling you the following.

Schadenfreude on May 4, 2012 at 1:04 PM

sorry, dude, based on the cognitive capacity you exhibit, you probably inherited that 1% status, if it’s indeed true. but i doubt it is.

sesquipedalian on May 4, 2012 at 1:09 PM

what difference does it make that they’re ‘illegal’?

Do you want to sustain the entire world? Nothing w/b left to feed you and Julia.

are you disgusted by corporate loopholes as well?

sesquipedalian on May 4, 2012 at 12:45 PM

You s/b mad at Bank of America, GM, GE and Immelt, Obama, Goldman Sachs and co., Soros and all those 1%rs who sustain Obama, alas, you hypocrite extraordinaire.

p.s. I’m glad that my comments irritate you…all day.

Schadenfreude on May 4, 2012 at 1:10 PM

sesquipedalian on May 4, 2012 at 1:09 PM

Then you are a bigger fool than is assumed around here.

Schadenfreude on May 4, 2012 at 1:11 PM

Plus, sesqu, cognitive capacity and discernment are both indignant.

Schadenfreude on May 4, 2012 at 1:13 PM

shick on May 4, 2012 at 12:58 PM

Note there are no limits to how many dependents you can claim.

antipc on May 4, 2012 at 1:13 PM

I don’t disagree with you about the entitlement programs. My beef is that it cannot be argued that we are not a wealth redistribution nation if very specifically people are getting more in their REFUND then was withheld from their wages. According to some here that happens.

I’m very shocked to hear that and perhaps I need to admit my naivete.

Thanks for you thoughts.

shick on May 4, 2012 at 12:58 PM

Yes you CAN get much, much more back than you paid in. That is how a Child tax credit, or any, tax credit works. If you are low income, you may have had say, $500 taken out of your wages over the course of the year. You will then get all of that back. If, however, you have dependant children you will also get back the $1,000 credit for each child over and above your $500. The Additional Child credit allows you to claim $1,000 for children who are NOT yours and may not even live with you or in the country. That’s the scam part of all of this.

There are lots of various tax credits. You can get them for putting in energy efficient windows, for college expenses, for spending your own money on teaching supplies if you work at a school, etc. For all of them you need to supply documentation, except it appears, for the Additional Child credit.

Lily on May 4, 2012 at 1:13 PM

sorry, dude, based on the cognitive capacity you exhibit, you probably inherited that 1% status, if it’s indeed true. but i doubt it is.sesquipedalian on May 4, 2012 at 1:09 PM

And yet HE is the one who understands punctuation. How odd.

Squiggy on May 4, 2012 at 1:13 PM

You are sure about this? Prove it. I don’t understand how the government can give someone their money back to them if they never gave it.
shick on May 4, 2012 at 12:48 PM

From item 10 in the article provided link to IRS.gov:

Additional Child Tax Credit – If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

I would add the link here but my phone its hard to copy/paste.

This is how you get the IRS, err taxpayers, to pay you rather than just limit at zero income tax, and where the ‘outrage’ comes from.

Disclaimer: not a tax credit expert…never got one or even tried. Maybe im doing it wrong. :-(

Cloture on May 4, 2012 at 1:14 PM

“…awarded to an illegal alien who claimed 20 children live in a single trailer, that actually housed a single child.”

And, I’ll bet romney’s $10,000 gambling fund that each of these 20 will miraculously find a way to cast one (or more) votes for OBOZO in the next election.

TeaPartyNation on May 4, 2012 at 1:19 PM

what a rotten soul you have…

sesquipedalian on May 4, 2012 at 12:54 PM

NO one has more rotten souls than the lefties. They keep these people in the shadows, sustained by illegal tax dough, to have legal or illegal votes.

If lefties w/b good and well-meaning people toward the poor, the illegals who’re already here, they’d encourage them to study, learn English, advance in all ways possible, not to remain ignorant and slave-working on their plantations.

Lefties are horrific toward the domestic minorities and toward the poor in general.

It’s all a facade for modern day exploitation. It’s why they support Chinese and Indian sweat shops too, with no media coverage and regard, so long as their capos win political power.

Just open your eyes. Too bad the poor are so ignorant. Otherwise they’d pitfork their ‘masters’, deservedly.

Schadenfreude on May 4, 2012 at 1:20 PM

And yet HE is the one who understands punctuation. How odd.

Squiggy on May 4, 2012 at 1:13 PM

weirdly, i think that my punctuation is correct.

sesquipedalian on May 4, 2012 at 1:20 PM

what difference does it make that they’re ‘illegal’?

sesquipedalian on May 4, 2012 at 12:45 PM

I guess that we could ask you, “What difference does it make if someone commits a crime — like tax fraud — or illegally entering into the United States or overstaying a visa?”

Tax fraud is illegal and we punish it. Illegal immigration is ILLEGAL and should be punished. I came here legally. I went through the process to become an American. I didn’t jump ahead of anyone else. I have never demanded anything from the American taxpayer.

are you disgusted by corporate loopholes as well?

sesquipedalian on May 4, 2012 at 12:45 PM

I want a flat tax, but do you understand the difference between a tax loophole, which is written by Congress and signed into law by a POTUS, and the commission of the crime of tax fraud?

The latter is a crime. The former is not.

As the great Judge Learned Hand once wrote:

Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.

Helvering v. Gregory, 69 F.2d 809, 810-11 (2d Cir. 1934).

Resist We Much on May 4, 2012 at 1:21 PM

GOP should hammer obama over his “stability, fair share” plan using these figures. They both approximate 4 billion per year. In other words, instead of taking 4 billion per year from tax-paying job creators to “stabilize” the deficit, just stop funneling that money to people that aren’t legal citizens who are defrauding us. Deficit stabilized. (yeah right)

GuyInL.A. on May 4, 2012 at 1:21 PM

Lily on May 4, 2012 at 1:13 PM

I’m going to have a chat with my tax preparer.

shick on May 4, 2012 at 1:25 PM

sesquipedalian on May 4, 2012 at 12:39 PM

You are not just a “fellow commenter”, you are the destroyer of freedom. Wake up, or we all perish. I just wish for you to get a reality check. If you do, I’ll help you, gladly.

Schadenfreude on May 4, 2012 at 1:25 PM

Prove to me that people are getting more money back from their returns then they have withdrawn from their paycheck. Don’t state it without the proof.

shick on May 4, 2012 at 12:45 PM

The report goes on to highlight several of these returns, actual redacted tax returns, generating refunds in excess of $10,000. So it’s easy to imagine how these numbers could really add up on a national basis.

Read the article. Refunds in excess of $10,000????? Do you think an illegal paid in this much?

lakeman on May 4, 2012 at 1:26 PM

The head of the IRS ( http://en.wikipedia.org/wiki/Commissioner_of_Internal_Revenue ) should be dragged out of his office by the hair of his head and exiled from Washington DC for life.

There is NO EXCUSE for this. Seriously. This man is aiding and abetting the theft of money from the US Taxpayer. He’s a thief. He needs to go.

crosspatch on May 4, 2012 at 1:26 PM

I would add the link here but my phone its hard to copy/paste.

This is how you get the IRS, err taxpayers, to pay you rather than just limit at zero income tax, and where the ‘outrage’ comes from.

Disclaimer: not a tax credit expert…never got one or even tried. Maybe im doing it wrong. :-(

Cloture on May 4, 2012 at 1:14 PM

Sometimes the truth can be a large and bitter pill to swallow.

Thanks. ;)

shick on May 4, 2012 at 1:28 PM

I went through the process to become an American. I didn’t jump ahead of anyone else.

you probably jumped ahead of many people because you’re educated and married to an American citizen or have relatives in the country, otherwise you’d have to wait decades until you get a green card. who are you trying to fool? your ignorant pals here who seem to believe that ‘getting in line’ is a feasible way for mexicans to come to this country?

sesquipedalian on May 4, 2012 at 1:29 PM

MeatHeadinCA on May 4, 2012 at 1:02 PM

Thank you for the tape. It proved:

1. That the congress and the WH/Holder are derelict in their duties.

2. That a local TV station does more good work than all the other media, combined, and may the rest spontaneously combust, for dereliction of duty.

3. The lawmakers s/b thrown out in Nov., from the left to the right. They are also derelict in their proactive oversight of the IRS and all agencies who dish out your hard earned taxes.

Until they shape up, or the populace who pays taxes revolts, starve the beast. It’s the only way to punish them, and to survive. Otherwise the beast will consume you and your progeny.

Leeches and lice multiply like crazy. Don’t provide them a medium.

Schadenfreude on May 4, 2012 at 1:29 PM

Read the article. Refunds in excess of $10,000????? Do you think an illegal paid in this much?

lakeman on May 4, 2012 at 1:26 PM

no . point taken

I’m getting schooled today.

Thank you.

shick on May 4, 2012 at 1:31 PM

sesquipedalian on May 4, 2012 at 1:29 PM

Mexico is an incredibly rich country, situated with lots of oceans surrounding it, with good soil and resources, and hard-working people.

You should propagate that their intelligentia and politicians do something to lift Mexico up, instead of dragging the U.S. down.

Schadenfreude on May 4, 2012 at 1:31 PM

Morgen Richmond makes an excellent case for tax reform here and illustrates the underlying problem with the tax code and the limited and illogical way the IRS currently functions remarkably well. The IRS, as a federal agency, should work hand in hand with DHS and ICE to apprehend and remove illegal aliens. It would be very effective use of cross agency cooperation.

If we enact a plan like Paul Ryan’s tax plan, we can eliminate these deductions and credits that set the system up for abuse and fraud. We need REAL EQUALITY in the tax code. Eliminating the multitude of deductions and credits would allow for real equality. As Richmond points out, if we’re going to set up welfare funds for specific entities we should simply call it welfare and set it up under strict regulation. They used to call ‘welfare’ RELIEF. I don’t care what its called, Relief, Welfare, or tax credits, it functions just the same and should be strictly regulated and monitored.

As to the illegal aliens situation, we all know that these people should not be in this nation at all and that with proper enforcement, a mandatory nation wide E-Verify system, a biometric national ID card, and a secured border would cause the vast majority of illegal aliens to self deport.

thatsafactjack on May 4, 2012 at 1:32 PM

You should propagate that their intelligentia and politicians do something to lift Mexico up, instead of dragging the U.S. down.

Schadenfreude on May 4, 2012 at 1:31 PM

‘propagate’, you croesus?

sesquipedalian on May 4, 2012 at 1:34 PM

there is not even a patriotic duty to increase one’s taxes.

Helvering v. Gregory, 69 F.2d 809, 810-11 (2d Cir. 1934).

Resist We Much on May 4, 2012 at 1:21 PM

Given the looting and cheating, charlatanry and exploitation of the producers, there is no longer a duty to contribute, as you well know :)

Schadenfreude on May 4, 2012 at 1:35 PM

‘propagate’, you croesus?

sesquipedalian on May 4, 2012 at 1:34 PM

Yes, propagate…the idea/s…that Mexico should do better. It has so much going, incl. great schools, poeple…if not for the enormous corruption…

I did not mean to says “propagandize” which is what you do here.

Schadenfreude on May 4, 2012 at 1:37 PM

As to Coresus…it is enormously satisfying and dignifying to be so self-made and independent. Try it. I recommend it highly.

Plus, I give more than you can ever imagine, but by my own volition and to my own causes.

Schadenfreude on May 4, 2012 at 1:39 PM

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